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Gold continues to rise against depreciating dollar

The gold price has continued finding its feet, rising to  by 09:17 GMT, while June gold futures were up to $1,243.00. The US dollar index, which measures the greenback against a basket of currencies, fell to its lowest since Nov.9 and last stood at 97.942.

The US dollar usually has an inverse relationship with the gold price, and the fall comes on the back of Donald Trump defence of his sharing of classified information with top Russian officials last week, prompting security concerns over foreign policy and international relations. Security concerns also follow an allegation that Trump asked the FBI to end a probe into his former security adviser.

In a memo, by now dismissed FBI Director James Comey, Trump allegedly requested an end to the probe into the relationship between Russia and former national security advisor Michael Flynn.

Economic factors that contributed to the gold price’s peaky outlook include the slipping of Asian stocks, and a delay in enacting inflationary “Trumponomics” as the White House deals with geopolitical setbacks. “Distractions at the White House lower the chances of the administration enacting legislation that is important to markets, namely tax and regulatory relief as well as infrastructure spending”, INTL FC Stone analyst Edward Meir told Reuters.

Writing in The Economic Times India, Prathamesh Mallya, chief analyst, Non-Agri Commodities and Currencies at Angel Broking, suggests there is a clear idea that gold in the short-term will be subject to “rate [hikes] in the US and the next US Federal Reserve meeting scheduled on 14th June 2017”.

Photo Credit: knowmadic news. Edited with TVScanline

Link to this article: : http://www.goldmadesimplenews.com/gold/gold-continues-to-rise-against-depreciating-dollar-13153/

Posted by on May 17 2017. Filed under Gold News. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.

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